Not All RV Loans Are Equal

Not all financing is good financing, and leaving your customers to hope for the best by working directly with a lender is a recipe for dissatisfaction.

There’s a Better Way

Ensuring your customers have access to the best financing for their RV purchase is as important as having the actual units in stock. We can get more loan applications approved and can facilitate the process from your lot to a new owner’s driveway.

Why Financing Matters

Most customers don’t come to the RV dealership with a suitcase full of cash. In fact, it’s more advantageous not to liquidate any assets to purchase your new RV. Current rates for an RV loan can be as low as 4.74% with good credit and depending on terms. Also, before you purchase your RV, check with your tax professional, because interest on an RV can be deducted from your taxes.

The first step prospective RV buyers should take is to fill out our online application. From this we determine your credit score, apply your down payment, determine the age and condition of the unit you intend to buy, find you the most advantageous rate, and come up with a monthly payment that is within your budget. These approvals can come as quickly as you need them to, either over the course of a week, or that afternoon at a boat and RV show.

Internal RV Dealer Financing

An internal financing department has certain advantages. However, the professional staff you’ll need to hire, the space for their offices, recruiting and turnover, and other overhead expenses generally make an internal finance department less efficient and more expensive than a firm like Finance Solution.

Outsourced Financing Providers

The difference between one outsourced provider and another comes down to a few basic metrics: how many loans are they able to close, what sort of rates are they able to secure for your customers, and can service be scaled up and down depending on the time of year? All the answers to these questions need to be weighed against each other. It won’t take long to discover why Finance Solution stands alone.

What’s a Typical Interest Rate for an RV Loan?

Interest rates for RV loans typically start around 5%, though some lenders may offer rates as low as 4.29%. These interest rates can go as high as 11%. However, the interest rate you get for your RV loan depends on several factors, including RV loan terms and your credit score. These factors are discussed in the following sections.

Secure the Best RV Financing Rates

A superior financing solution is a key way to boost the number of units you’re selling.

Get More Approvals

Options for RV Loan Terms and Rates

When you decide to purchase an RV, you need to consider your loan’s terms and rates. It’s best to determine whether you want a long-term or short-term loan. Why? RVs are considered luxury purchases, so they often have higher prices than cars and trucks. Because of this, RV loans often have higher interest rates than truck or car loans. The length of the loan you choose plus its interest rate determines how long it takes you to pay off the loan. You often have two options for RV loans:

Short-term loans: Some lenders offer loans that take two to seven years to pay off. These loans have high monthly payments that shorten the time it takes to pay the loan off. A short-term loan may sound like a great idea, but check if the high monthly payments fit your RV budget.
Long-term loans: Many lenders offer long-term loans that take 15 to 20 years for buyers to pay off. That may sound like a long time, but these loans allow for low monthly payments that may fit your budget. However, if you take on a long-term loan with a typical interest rate for an RV loan, you could end up paying more than your vehicle is worth over time.

Finance Solution helps you navigate these different loan options and choose the one that best fits your financial situation.

How Do You Qualify for an RV Loan?

How hard is it to qualify for an RV loan? It can be difficult or easy, depending on the following factors:

Credit Score: Lenders are more likely to grant you an RV loan if you have a good credit score. They prefer buyers with good credit scores because that means lower financial risk for them. If you have good credit, you most likely pay off your loans, and the lender can trust you to pay off your RV loan. Lenders prefer to approve RV loans for people with credit scores ranging from 690 to 700.
Debt-to-Income Ratio: This ratio determines how much money you bring in (income) versus how much money you spend in ongoing payments (debt). Lenders prefer RV buyers with low debt-to-income ratios because they have more money available to pay off the loan.
Comparable Credit History: Lenders want to know if you have paid off similar loans before they approve your RV loan. While they’re not exactly the same, house and auto loans could help you prove your credit history to your lender.

Finance Solution helps you examine these factors and apply for RV loans that you qualify for. We maintain relationships with lenders who have experience with RV loans. We also ensure that your loan gets quick approval so you can start enjoying your purchase.

How An RV Lending Specialist Helps Customers

Down payments are lower – The final terms of each loan will be determined by factors such as credit score, the condition of the unit being purchased, and down payment size (usually 10%).
Finance terms are longer – Recreational vehicles are assets that maintain their value and resale appeal. This means they tend to offer better terms. It isn’t unheard of to find repayment periods of 15-20 years for some units. This makes the RV of your dreams within your reach.
Preserve cash – Financing allows owners to keep more money in their bank accounts. For a new RV owner, you will need it for other expenses that come with buying an RV such as insurance, registration, fuel, internet access, cable or satellite TV, parking, and meals on your trips.
Financing may cost less – By not using financial assets to purchase a new RV, owners have more cash to invest in other opportunities. The earnings from these can potentially exceed the cost of your RV.

RV loans help you pay off a major investment. That’s why it’s best to buy your RV from a dealership rather than an individual online. We don’t provide loans for transactions conducted between individuals on Facebook Marketplace and Craigslist. These types of transactions come with elevated fraud and financial risks. How? When a seller advertises an RV on Craigslist or Facebook Marketplace, there’s no proof that their vehicle really exists. So they could put up a listing promising an RV without actually having one to sell.

When someone decides to buy it, the seller takes their money without ever providing the vehicle because they didn’t have one in the first place. If we provide a loan for such a transaction, we and the lenders we work with could face penalties and other consequences. We prefer to work with dealerships because they have RVs on their lots that we know we can finance safely.

Move More Units

Dealerships that outsource their F&I through Finance Solution regularly see a 20% bump in approvals and, by extension, units moved off the lot.

Not All RV Loans Are Equal

Why Financing Matters

Internal RV Dealer Financing

Outsourced Financing Providers

What’s a Typical Interest Rate for an RV Loan?

Secure the Best RV Financing Rates

Options for RV Loan Terms and Rates

How Do You Qualify for an RV Loan?

How An RV Lending Specialist Helps Customers

Read More About Our RV Financing Solutions

Buying an RV in the Off Season: The Complete Guide

Loan Down Payments: A Guide to Financing Boats and RVs

RV Loans: How Much Does Condition Really Matter?

Move More Units

Recent Posts

Services

Get In Touch